Monday, July 16, 2007

Debt Resolve, Inc.

Debt Resolve, Inc. is an AMEX listed security that has been trading in a range between $0.50 and $5.20 over the past year. With 7,209,740 shares outstanding, a recent price of $3.20 gives a total market capitalization of $23,071,168. While there are certainly larger companies, Debt Resolve, Inc. has definitely earned its place in the pack. Last year, Debt Resolve, Inc. created $-4.22 in earnings for every share outstanding.

Debt Resolve, Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Debt Resolve, Inc. is unlikely to be an interesting value proposition.

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